JID Thanks for the response. Investopedia seems to agree with me...

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loki01

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07/05/18

13:26

Post #: 32929483
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Originally posted by JID ↑

Hi Loki and all,

I think I'll stand by my 47% dilution.

Denominator stays the same ... i.e. 1.233 B shares on issue now, prior to raising.

A potential total number of new shares to be issued as part of this process is 578.8m including all later conversions.

Conversions are all at a relatively low 30% above trading halt SP ... thus, you can assume that they will all get converted if BDR survives its current state.

If the conversions do not occur ... well, I think it's safe to assume (former) shareholders will have already lost everything.

Above is immaterial, IMO ... BDR is simply a 'do not touch' unless people are looking for a lottery ticket, but even then, the payout if the lottery ticket 'wins' has just been materially reduced and, IMO, it looks like the probability of a 'win' has lowered (due to Sprott financing not proceeding and conditional nature of T2).

Cheers
John

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JID

Thanks for the response.

Investopedia seems to agree with me otherwise using your approach in their example the dilution would be 100% (obviously wrong) rather than 50%. Anyway that is the way we did this sort of analysis when I took the Gard Dip. of Applied Finance and Investment at the Securities Institute of Australia about 20 years ago.

loki (my grey cells are vanishing at a rapid rate, but despite approaching my 70s there are still a few left.)

BDR Price at posting: 7.1¢ Sentiment: None Disclosure: Held
5 Upvote

0 Great analysis

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